Buffett continues to "trim down" bank stocks: Berkshire Hathaway sells off another $6.9 billion of its holdings in Bank of America Corp (BAC.US) in Q2.

Note that Berkshire Hathaway may continue to reduce its stake in Bank of America Corp in the second quarter, as its latest quarterly report revealed some clues. As of June 30, 2025, Bank of America is still one of Berkshire's top five major holdings. Berkshire initially began reducing its position in Bank of America in July 2024. The report shows that the conglomerate, led by Buffett, sold about $6.9 billion in stocks during the three-month period, realizing a pre-tax profit of $5.3 billion, while also purchasing about $4 billion in stocks. Although the 13F filing did not disclose individual stock trading details, if Berkshire were to reduce its approximately 631 million shares of Bank of America stock held as of the end of March 2025 (currently valued at about $26.5 billion), it would align with the filing data. It is estimated that Berkshire's cost per share is about $7, as its position of over 1 billion shares mainly comes from warrants obtained ten years ago at an exercise price of $7. Data shows that the average price of Bank of America stock in the second quarter was $42, meaning Berkshire's cost basis is only about 17% of the market price, in line with the reported profit ratio. Year-to-date, Bank of America's stock performance has lagged behind the market by nearly two percentage points, ranking last among large banks in the industry. The disappointing Berkshire financial report released last Saturday led to a 2.9% drop in its stock price on Monday.